The following table summarizes yields to maturity on several 1-year, zero-coupon securities:

Security	Yield
Treasury	3.1103.110%
AAA Corporate	3.2223.222%
BBB Corporate	3.7533.753%
B Corporate	4.3504.350%

a. What is the price (expressed as a percentage of the face value) of a 1-year, zero-coupon corporate bond with a AAA-rating and a face value of

$ 1 comma 000$1,000?

b. What is the credit spread on AAA-rated corporate bonds?

c. What is the credit spread on B-rated corporate bonds?

d.How does the credit spread change with the bond rating? Why?

Note: Assume annual compounding.

a. What is the price (expressed as a percentage of the face value) of a 1-year, zero-coupon corporate bond with a AAA-rating and a face value of

$ 1 comma 000$1,000?

The price, expressed as a percentage of the face value, is

nothing.

(Round to three decimal places.)